Birmingham Commonwealth Games Bill [HL]

Lord Foster of Bath Excerpts

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Tuesday 25th February 2020 Lords Chamber

Moved by

[Lord Foster of Bath]

1: Clause 1, page 1, line 11, after “interest” insert “and financial reporting”

[Lord Foster of Bath (LD)]

My Lords, I will speak to Amendment 1, standing in my name and that of my noble friend Lord Addington. Before I begin, I congratulate the Minister on her prescience in predicting that before this stage of our Committee deliberations, the Commonwealth Games Federation would have found a solution to the issues of shooting and archery. I note that our second group of amendments will give us ample opportunity to hear more details about that.

This group deals predominantly with financial matters, in particular financial reporting, and provides an opportunity for the Minister to update us on the finances of the Games and to address some of the lingering problems. Amendment 1 proposes simply that any government grant, loan, guarantee or indemnity must be subject to the condition that the recipients provide financial reports, which seems eminently sensible.

Amendment 5, in my name and the names of the noble Lords, Lord Bilimoria and Lord Moynihan, specifies that the first such report from the organising committee should be completed within six months of the coming into force of this provision, although I note that the reference to shooting and archery in that amendment may no longer be relevant in light of the CGF’s decision.

Amendment 11, from my noble friend Lord Addington, requires in the same six-month period a report from the Secretary of State to be laid before both Houses. It too covers financial provision alongside consideration of other funding mechanisms such as a local lottery or local tax. This issue is picked up in Amendment 3, tabled by the noble Lord, Lord Hunt of Kings Heath, and other noble Lords. Quite sensibly, this too looks for a wider report by the Secretary of State—this time within 12 months—covering not only the issues covered in other reports but how to help raise additional funds, and government support for minimising the impact of the Games on local services and maximising various legacy projects—an issue we will discuss in more detail later.

Reference continues to be made to a hotel tax. I am well aware of Core Cities UK’s enthusiasm for this. As I said in a previous discussion, before we introduce such a thing, we should reduce the VAT on accommodation and attractions, as the vast majority of other EU countries have done. However, I note that this amendment has changed from an earlier version and now refers to such a tax applying only during the Games. That is a period of just 12 days. Given that we were previously told that the estimated income for such a tax over a three-year period would be £15 million, a simple calculation suggests that a hotel tax levied solely during the period of the Games would raise just £160,000. I will leave it to the movers of that amendment to explain the benefits of such an approach.

[Lord Snape (Lab)]

Is it not a fact that in previous debates, the noble Lord endorsed a hotel tax—a view shared by many of us—quite enthusiastically, whereas his noble friend Lord Addington denounced the whole idea on principle? It is very unusual for Liberal Democrats to disagree on such matters, but for clarification, could he let us know where his party stands on this important issue?

[Lord Foster of Bath]

I am enormously grateful to the noble Lord. The entire House is looking forward to a later debate on future signage arrangements around Birmingham New Street station, which he is the world’s expert on. I hope that, before our Committee deliberations are finished, he will offer to lead a team of Games volunteers at the station to guide people, since he knows his way around there better than most.

However, the noble Lord’s suggestion is wrong: at no point have I been a clear enthusiast for a hotel tax. He will note that in many debates in the other place, I expressed on the record grave reservations about such an approach until the issue of VAT had been addressed. There is commonality of agreement with my noble friend on the Front Bench on this issue, but there are a range of views, which we will have an opportunity to hear when his noble friend introduces his amendment.

My final two amendments, 19 and 20, look at the wider reporting mechanism. Amendment 20 calls for an earlier report than the Bill currently provides for. I hope the Minister agrees that on financial and other vital issues, we need early reporting. Amendment 19, from the noble Lord, Lord Moynihan, calls for not only earlier reports but far more frequent reports than is currently proposed. That way, your Lordships and the other House can keep abreast of what is happening and hold people to account. The more reports that we have as the Games develop, the better, and it is important that we use them to keep a tight grip on expenditure.

Let me give an example of why there are continuing concerns, and why there is a need to keep a grip and to understand what is meant by the Government’s plans for underwriting the Games. We know from newspaper reports that removing the National Express bus depot in order to create the Games village and subsequently providing 1,400 much-needed homes in the area was initially estimated to cost £2 million. Reports now suggest that the cost will be a staggering eight times higher, at £15.5 million. Will the money that has to be found be additional to the £185 million that Birmingham City Council must find, or will it be covered by the Government’s underwriting agreement with the council? It is important that we find out such details now. We need early and regular financial reports on what is taking place, and that is why I have tabled my amendment. I support nearly all the other amendments, albeit that one needs a slight tweak. I beg to move.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I shall speak to my Amendment 3 and respond to the noble Lord, Lord Foster. He is right about the need for transparency in the underwriting agreement between the Government and Birmingham City Council. It is not at all clear to noble Lords. The key issue is: who is the provider of funds of last resort if the Games run into financial difficulty? We are entitled to be told at some point during the passage of the legislation. Whether we get that is another matter entirely.

It needs to be repeated that these Games are a fantastic opportunity for the country, Birmingham and the West Midlands. Many characteristics of the Games are very exciting. Now that we have resolved imaginatively the issue of the two sports originally to be excluded, all is set fair for a brilliant competition. However, the problem of finances for a city that is already under some financial challenge is formidable. As we have heard, there is a 75:25% budget split between central government and Birmingham City Council. Birmingham has to find £184 million and it will of course look for commercial opportunities to help with that; but it also has other plans such as the post-Games housing development in Perry Barr. All that means that sources of private funding will have to be found. We must recognise that the city council’s finances are under pressure, which is why this is such an important issue.

I have been interested in a tourism levy because the city council has been. The Core Cities group believes that a levy would be a sensible and fair way in which to raise funding revenue. Scotland is close to implementing such a levy for Edinburgh, and the consultation of the city council there showed high levels of support for it—85% of respondents to the consultation backed a levy of either 2% or £2 per room per night. The noble Lord, Lord Foster, rather unkindly took me to task for the wording of my amendment. We should not take the wording of amendments in Committee too literally. The point that I am trying to make and is clear in my amendment is that we want the Government to look at this matter sympathetically and produce a report. The issue that the noble Lord is right to raise is the length of time for which a levy would operate. I fully accept that important point and it surely would be discussed after review by the Government and the city council.

[Lord Foster of Bath]

I entirely accept the noble Lord’s point and that a drafting change can be made, but does he not think it more sensible to adopt the approach proposed in the amendment tabled by my noble friend Lord Addington, which talks about the Government looking at ways they can help Birmingham City Council raise funds through, for example, a local tax more generally or even a local lottery? There are quite imaginative solutions and to tie it down to one specific mechanism is probably an error.

[Lord Hunt of Kings Heath]

We already know from what the Minister said at Second Reading that she will say that the decision on a new tax rests with Her Majesty’s Treasury and it thinks that local authorities already have ample means to raise funding. I am sure she will say that again. The noble Lord raises some fundamental points about local government finance, and I am very sympathetic to them. I have been trying to put forward a very simple suggestion: as a tourism levy has been floated by a number of local authorities and we are seeing one implemented soon in Edinburgh, why not use the Commonwealth Games as a way to pilot it—without commitment to any other city or area of the country or that it will be a long-term tax—to see whether it could work?

I understood that, post-election, Her Majesty’s Treasury was looking at changing all the rules of engagement as part of the Government’s new strategy towards local government and to help in some of the more deprived parts of the country. This is a very straightforward way to try something out to see whether it would work, whether it would impact on the hotel economy—a downturn is clearly one risk—and whether it would be a very straightforward way to enable local authorities to raise more resources for sports, leisure and culture in the future. I do not see the problem with having a pilot scheme to allow that to happen.

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I hope that these details are enough to reassure your Lordships that there will be adequate opportunities for Parliament to scrutinise the work of the organising committee and about the Government’s commitment to working with Birmingham City Council and the entire Games partnership; to monitoring the Games budget carefully and managing any cost pressures effectively; and, further, to supporting local authorities in bidding for and delivering future sporting events. I therefore ask the noble Lord to withdraw his amendment.

[Lord Foster of Bath]

Before the Minister sits down, the one issue that she really has not addressed is the nature of the underwriting agreement between the Government and Birmingham City Council. Could she dwell on that and in particular answer the question asked by the noble Lord, Lord Hunt: who is the funder of last resort in the event that things go wrong?

[Baroness Barran]

I fear that I may be repeating what has been said in previous debates, but as part of the hosting requirements for the Games the Government have committed to underwriting the cost of the organisation and delivery of the 11 days of sport. There is a very detailed set of scrutiny arrangements for that and arrangements for contingencies and other elements.

[Lord Foster of Bath]

My Lords, I thank all noble Lords who have contributed to the debate. I join many of them in expressing my own excitement about the forthcoming Games. I put on record my praise for the organising committee and the work it is doing, particularly, as the Minister has said, the way in which it has been reaching out to parliamentarians to ensure that we have been thoroughly briefed about a whole range of issues.

I thank the Minister for the careful way in which she has answered many of the questions that have been asked. I know that a number of them remain somewhat unanswered, including those asked by my noble friend Lord Shipley about some of the additional costs that will be incurred by Birmingham City Council that are perhaps not directly associated with the organising and running of the Games but which will impact upon the city and the surrounding area. Nevertheless, I am grateful for her explanation of the status of the organising committee as an NDPB and therefore the management agreement that it has, and the need to have annual reports, and, indeed, her pointing out that there will be more frequent reports on a range of individual issues; she referred to access and legacy, two issues to which we will no doubt be returning.

With those remarks, and conscious that we have all said we want to give the Bill a speedy passage, I beg leave to withdraw the amendment.

Amendment 1 withdrawn.

Moved by

[Lord Foster of Bath]

2: Clause 1, page 1, line 17, leave out “or” and insert “and”

[Lord Foster of Bath]

My Lords, in the spirit of wishing to move the Bill on quickly, I point out to your Lordships’ House that my amendment would simply delete the word “or” and insert the word “and”. It is one of those typical amendments that are used to trigger debate on a particular issue. It was intended to give us an opportunity to look at the point made in Clause 1, which referred to the Games as meaning

“an event forming part of the Games (whether or not a sporting event), or”—

or “and”—

“any other event arranged by, or on behalf of, the Organising Committee”.

That would have given us the opportunity to debate the issue of archery and shooting. As we have heard, the Commonwealth Games Federation has now made an announcement about what it intends shall happen with shooting and archery. It has made it clear that it will be a completely separate event not in any way related to the Birmingham 2020 Games, with its own medals, its own organisation and certainly no financial impact on Birmingham City Council or the Government. Nevertheless, subsequent amendments in this group give noble Lords and particularly the Minister an opportunity to comment on the Commonwealth Games Federation’s decision, about which Noble Lords may have a number of concerns. For example, if we are to have, as we have been told, a combined medal table, with the Indian Games covering archery and shooting and the Birmingham Games covering any other events, what exactly is the status of that table? The question of whether the India 2020 Games will be expected to abide by regulations—social charters and so on—similar to the ones we are adopting will also doubtless be raised. I sense the Minister will say that that is outwith the debate, since it will no longer be our responsibility; however, the medal table will be.

The longer-term issue is whether this is the beginning of what could be a very exciting future for the Commonwealth Games, in which individual countries that may find it difficult to fund the full cost of all aspects of the Games in their country could partner with other countries. There could be some very exciting developments, but questions will be raised. For instance, who will have the right to determine which events are to be part of the Games, or will that suddenly revert to the centre, with the Commonwealth Games Federation handling all the details?

We look forward to hearing from the Minister on these issues, and from others with far greater expertise than I have—not least the noble Lord, Lord Moynihan, whom I am sure we are all looking forward to hearing from. I beg to move.

[Lord Moynihan]

My Lords, I rise to speak to Amendments 12, 13, 14, 15 and 16 in this group, standing in my name. I will speak to them all since they refer to the same item, in view of the decision that was made last night and was announced by the Commonwealth Games Federation.

It is important in the first instance to recognise that all the points that are relevant in this context have been raised by the noble Lord, Lord Foster. I will focus pretty much exclusively, as one might expect, on the sporting aspect of the comments that he has made.

It is important to place on the record the work of the executive board of the Commonwealth Games Federation over the weekend to approve the hosting of the Commonwealth archery and shooting championships in Chandigarh, India, in January 2022—a proposal put to them by the Commonwealth Games of India. This is indeed ground-breaking. It is an innovative approach that the Commonwealth Games Federation is taking in partnership with the CGI, the National Rifle Association of India and the Archery Association of India, and it meets the requirements of all stakeholders, especially the Commonwealth shooting and archery athletes. The International Shooting Sport Federation should also be congratulated on its role. It has facilitated the settlement among the Commonwealth family of what has become the vexed question of the exclusion of shooting from the Commonwealth Games 2022—vexed to the point that there was real concern about India boycotting the Games.

Reference has also rightly been made to the important initial work undertaken by the ISSF on the sidelines of its general assembly—held in December last year in Munich with the Commonwealth Games Federation, the NRAI and the Commonwealth Games shooting federation—on a detailed protocol governing the future relationship with the international federation, working in close conjunction with the Commonwealth Games Federation. If the Minister does not have that protocol to hand, it would be helpful if it could be circulated to interested members of the Committee, or indeed placed in the Library. The decision confirmed, as has been made clear by the noble Lord, Lord Foster, that Chandigarh 2022 and Birmingham 2022 will be two separately organised and funded Commonwealth sports events.

However, then came the unexpected announcement last night, not least the Commonwealth Games Federation’s stating that

“as a further and final legitimate ranking of competing nations and territories from the respective competitions”,

the two will be combined. The results from both will be combined a week later. I warmly welcome the decision in principle: it takes the Commonwealth Games into a new era of recognising the importance which should be attached to countries with a common purpose sharing venues when hosting expensive international sport. It comes close on a number of similar examples, not least in the Olympic and the Paralympic world, when it comes to bidding. Indeed, a bit more recently, five ASEAN countries have come together to talk about jointly bidding for the FIFA World Cup.

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[Baroness Barran]

My noble friend makes a very fair point, and I am sure that the Commonwealth Games Federation has given enormous consideration to these matters and will continue to reflect on them.

I turn to the amendments in this group. As noble Lords will be aware, the current proposal was announced by the Commonwealth Games Federation only yesterday and was obviously very timely, given the keen interest of a number of your Lordships in this Chamber to see the championship event funded and delivered in Chandigarh by the Indian Olympic Committee and the Government of India. I reiterate what I said in the earlier group that there is no financial operational responsibility sitting with the Birmingham 2022 Organising Committee. As this will be organised and funded as a separate event, the organising committee will not be in a position to report on the progress of delivery of the shooting and archery championships, as called for by my noble friend’s amendments. As such, and to address the amendment in the name of the noble Lord, Lord Foster, the measures in this Bill apply only to events forming part of the Birmingham 2022 Games or any other event arranged by, or on behalf of, the Birmingham 2022 Organising Committee. I do, however, note the intention behind the amendments and fully support the steps taken by the Birmingham 2022 Organising Committee to ensure that social values are a key consideration from delivery through to legacy.

In particular, I welcome, together with all noble Lords, the development of the Social Values Charter, which embodies the values of the Commonwealth sports movement and the Transformation 2022 agenda. I agree that the central focus on social values is greatly welcomed and provides another fantastic example to the organisers of other and future events. This has already been touched on this evening. Accordingly, we hope that the Social Values Charter will be a legacy for future Games and ask that the Commonwealth Games Federation considers how the ground-breaking work undertaken by Birmingham 2022 can become a normal convention.

The Commonwealth Games Federation’s Transformation 2022 strategy is clear about how the Commonwealth sports movement places human rights, governance and sport for social change at the heart of its new vision and, indeed, it has already confirmed that, like its host city arrangements for other events, Chandigarh 2022 will be expected and contracted to uphold the highest standards in this regard. Given the clear separation between the two events, but not taking away from the important work that Birmingham 2022 is doing to promote social values, I ask that the noble Lords withdraw their amendments.

[Lord Foster of Bath]

My Lords, I thank the disgracefully unpaid Minister for her very careful reflection on the comments made by other noble Lords, not least the noble Lord, Lord Moynihan. If the noble Lord, Lord Snape, is to introduce his crowdfunding scheme, I will certainly commit to sharing the website address with Liberal Democrat colleagues.

The most welcome thing that the Minister spoke about was her willingness to continue discussions with the Commonwealth Games Federation on this issue. I come at this from a slightly different position, which was raised by other noble Lords. I reflect very carefully on what the noble Baroness, Lady Grey-Thompson, said about the importance of putting athletes very much in our thinking as we prepare any of these things. It seems somewhat strange that people who compete in the Birmingham 2022 Games will be awarded a Commonwealth Games medal, whereas those who compete in Chandigarh in archery and shooting are to be given a Commonwealth sports medal. One wonders whether there will be some view about the status of those not being exactly the same. Indeed, if they are not, the question has to be asked: why are they being put together in a single medal table? When the Minister continues deliberations with the Commonwealth Games Federation, I hope that sort of thinking will be uppermost in her mind. How will the athletes feel about the arrangement that is currently proposed?

However, I recognise entirely that what the Minister said is that all the amendments in this group are now otiose. They are not relevant to this Bill because what is going to happen in India is a totally separate event. On that basis, I beg leave to withdraw the amendment.

Amendment 2 withdrawn.

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[Lord Addington]

My Lords, I will make a few comments. First, on my amendment, I think we covered part of the international co-ordination and spreading the events in the previous debate, but if the Minister has more to say on that I will of course listen gladly. The main thrust coming through here is represented by the noble Lord, Lord Hunt, effectively asking whether the Government will enact their own sports policy properly, which involves the department of health co-ordinating with the Department for Education and local government to make sure we have facilities to get out there and participate in grass-roots sport. Competitive sport is there at grass-roots level; it is just not as well done. I pray in aid my own sporting career. I am afraid that I missed Second Reading because I was playing rugby against the French Parliament. Yes, we lost. I recommend parliamentary rugby to anybody who wants to see the detail of the game, because we are so slow that you do not miss anything.

A good sports policy alone does not create champions. They often come by freak and fluke, and the very lucky get through. A good system will leave a supply of them. A really good sports policy will provide second-team and third-team players for small clubs and address the health problems, et cetera. People saying, “Wow, isn’t he great, let’s look at him on TV”, but then sitting down with beers and chips and saying, “Let’s try another channel” does not help very much. We need to get people out there to take part.

Perhaps we should be set up differently, but schools are a great facility. I started my club career playing on a school pitch that was lent to a small club that had just got itself a ground. We came through after 10 or 15 years of using school pitches. We must not stop that spontaneous growth of sport. We have a tradition of organising ourselves at a far higher level than any other country in Europe. Doing it ourselves means a cheaper facility. We should help and support that, as these amendments would do, enacting a sports policy which says, “These bits of government should come together”. Surely if something as exciting as a Commonwealth Games cannot allow us to do that, we really are missing a trick.

[Lord Foster of Bath]

My Lords, the noble Baroness, Lady Grey-Thompson, is 100% right; schools must be involved in trying to ensure the sporting legacy that we desperately seek. There have been financial problems, as raised by the noble Lord, Lord Hunt. However, there have also been many initiatives over the years to do the most sensible thing: link sports clubs with schools, so that youngsters have an opportunity to try a far wider range of sport and find one that they are interested in. When they leave school, they would then have somewhere to continue participating in that sport. Sadly, we still have dreadful figures about the drop-off rate of sports participation at the end of the school years.

I support the amendment tabled by the noble Lord, Lord Moynihan, which has my name attached to it. He rightly points out that although in all the multisport events in this country over the years, we have had a range of very good legacies—buildings, contracts, upskilling and so on—we have failed to develop a sporting legacy from any of them, and certainly not at anything like the level that we hoped for.

I notice that the organising committee’s current legacy plans were on just one page of the Social Values Charter it put out in October 2019, saying that everybody is working together and that it is still in the process of developing long-term legacy plans. As I am sure noble Lords have seen, a number of new appointments have been made to the legacy and benefits committee; I welcome that. It has identified nine key themes for legacy. One of them is what we are speaking about: physical activity and well-being. Against each of the other eight, various organisations are also referenced, but in relation to physical activity and well-being the DCMS is listed as the lead body. The Minister said that it is the responsibility of the organising committee, as an NDPB, to produce regular reports on issues, and we have been assured that legacy will be one of them. But can she tell us what plans the Government have—and her department has—to produce a legacy planning report? It would give those of us who are interested an opportunity to comment, and perhaps collectively achieve for the first time what the noble Lord, Lord Moynihan, is keen for, as am I: a true, lasting sporting legacy from a multisport event.